MPWR Monolithic Power Systems Inc

Monolithic Power Systems, Inc. (“MPS”) (Nasdaq: MPWR), a fabless company with a global footprint that provides high-performance, semiconductor-based power electronic solutions, today announced financial results for the quarter and nine months ended September 30, 2023.

The financial results for the quarter ended September 30, 2023 were as follows:

●	Revenue was $474.9 million for the quarter ended September 30, 2023, a 7.6% increase from $441.1 million for the quarter ended June 30, 2023 and a 4.1% decrease from $495.4 million for the quarter ended September 30, 2022.
●	GAAP gross margin was 55.5% for the quarter ended September 30, 2023, compared with 58.7% for the quarter ended September 30, 2022.
●	Non-GAAP gross margin (1) was 55.7% for the quarter ended September 30, 2023, excluding the impact of $1.0 million for stock-based compensation expense and $0.1 million for deferred compensation plan income, compared with 59.0% for the quarter ended September 30, 2022, excluding the impact of $1.2 million for stock-based compensation expense.
●	GAAP operating expenses were $128.0 million for the quarter ended September 30, 2023, compared with $139.0 million for the quarter ended September 30, 2022.
●	Non-GAAP operating expenses (1) were $96.6 million for the quarter ended September 30, 2023, excluding $32.6 million for stock-based compensation expense and $1.3 million for deferred compensation plan income, compared with $98.4 million for the quarter ended September 30, 2022, excluding $41.8 million for stock-based compensation expense and $1.2 million for deferred compensation plan income.
●	GAAP operating income was $135.6 million for the quarter ended September 30, 2023, compared with $151.9 million for the quarter ended September 30, 2022.
●	Non-GAAP operating income (1) was $167.8 million for the quarter ended September 30, 2023, excluding $33.6 million for stock-based compensation expense and $1.4 million for deferred compensation plan income, compared with $193.7 million for the quarter ended September 30, 2022, excluding $43.0 million for stock-based compensation expense and $1.2 million for deferred compensation plan income.
●	GAAP other income, net, was $2.3 million for the quarter ended September 30, 2023, compared with $5.0 thousand for the quarter ended September 30, 2022.
●	Non-GAAP other income, net (1) was $3.9 million for the quarter ended September 30, 2023, excluding $1.6 million for deferred compensation plan expense, compared with $1.3 million for the quarter ended September 30, 2022, excluding $1.3 million for deferred compensation plan expense.
●	GAAP income before income taxes was $137.9 million for the quarter ended September 30, 2023, compared with $151.9 million for the quarter ended September 30, 2022.
●	Non-GAAP income before income taxes (1) was $171.7 million for the quarter ended September 30, 2023, excluding $33.6 million for stock-based compensation expense and $0.3 million for net deferred compensation plan expense, compared with $195.0 million for the quarter ended September 30, 2022, excluding $43.0 million for stock-based compensation expense and $0.1 million for net deferred compensation plan expense.
●	GAAP net income was $121.2 million and $2.48 per diluted share for the quarter ended September 30, 2023. Comparatively, GAAP net income was $124.3 million and $2.57 per diluted share for the quarter ended September 30, 2022.
●	Non-GAAP net income (1) was $150.3 million and $3.08 per diluted share for the quarter ended September 30, 2023, excluding $33.6 million for stock-based compensation expense, $0.3 million for net deferred compensation plan expense and $4.8 million for related tax effects, compared with $170.7 million and $3.53 per diluted share for the quarter ended September 30, 2022, excluding $43.0 million for stock-based compensation expense, $0.1 million for net deferred compensation plan expense and $3.2 million for related tax effects.

The financial results for the nine months ended September 30, 2023 were as follows:

●	Revenue was $1,367.1 million for the nine months ended September 30, 2023, a 2.5% increase from $1,334.1 million for the nine months ended September 30, 2022.
●	GAAP gross margin was 56.3% for the nine months ended September 30, 2023, compared with 58.5% for the nine months ended September 30, 2022.
●	Non-GAAP gross margin (1) was 56.6% for the nine months ended September 30, 2023, excluding the impact of $3.3 million for stock-based compensation expense and $0.4 million for deferred compensation plan expense, compared with 58.8% for the nine months ended September 30, 2022, excluding the impact of $3.7 million for stock-based compensation expense.
●	GAAP operating expenses were $397.8 million for the nine months ended September 30, 2023, compared with $390.9 million for the nine months ended September 30, 2022.
●	Non-GAAP operating expenses (1) were $288.7 million for the nine months ended September 30, 2023, excluding $105.3 million for stock-based compensation expense, $3.8 million for deferred compensation plan expense and $0.1 million for amortization of purchased intangible assets, compared with $277.6 million for the nine months ended September 30, 2022, excluding $122.0 million for stock-based compensation expense, $8.9 million for deferred compensation plan income and $0.1 million for amortization of purchased intangible assets.
●	GAAP operating income was $372.2 million for the nine months ended September 30, 2023, compared with $389.9 million for the nine months ended September 30, 2022.
●	Non-GAAP operating income (1) was $485.0 million for the nine months ended September 30, 2023, excluding $108.6 million for stock-based compensation expense, $4.2 million for deferred compensation plan expense and $0.1 million for amortization of purchased intangible assets, compared with $506.8 million for the nine months ended September 30, 2022, excluding $125.7 million for stock-based compensation expense, $9.0 million for deferred compensation plan income and $0.1 million for amortization of purchased intangible assets.
●	GAAP other income, net, was $14.1 million for the nine months ended September 30, 2023, compared with other expense, net, of $5.7 million for the nine months ended September 30, 2022.
●	Non-GAAP other income, net (1) was $10.7 million for the nine months ended September 30, 2023, excluding $3.4 million for deferred compensation plan income, compared with $2.9 million for the nine months ended September 30, 2022, excluding $8.6 million for deferred compensation plan expense.
●	GAAP income before income taxes was $386.3 million for the nine months ended September 30, 2023, compared with $384.2 million for the nine months ended September 30, 2022.
●	Non-GAAP income before income taxes (1) was $495.8 million for the nine months ended September 30, 2023, excluding $108.6 million for stock-based compensation expense, $0.8 million for net deferred compensation plan expense and $0.1 million for amortization of purchased intangible assets, compared with $509.6 million for the nine months ended September 30, 2022, excluding $125.7 million for stock-based compensation expense, $0.4 million for net deferred compensation plan income and $0.1 million for amortization of purchased intangible assets.
●	GAAP net income was $330.5 million and $6.78 per diluted share for the nine months ended September 30, 2023. Comparatively, GAAP net income was $318.6 million and $6.60 per diluted share for the nine months ended September 30, 2022.
●	Non-GAAP net income (1) was $433.8 million and $8.90 per diluted share for the nine months ended September 30, 2023, excluding $108.6 million for stock-based compensation expense, $0.8 million for net deferred compensation plan expense, $0.1 million for amortization of purchased intangible assets and $6.1 million for related tax effects, compared with $445.9 million and $9.23 per diluted share for the nine months ended September 30, 2022, excluding $125.7 million for stock-based compensation expense, $0.4 million for net deferred compensation plan income, $0.1 million for amortization of purchased intangible assets and $1.9 million for related tax effects.

The following is a summary of revenue by end market (in thousands):

		Three Months Ended September 30,								Nine Months Ended September 30,
End Market		2023				2022				2023				2022
Storage and Computing		$	129,462			$	112,880			$	373,827			$	331,754
Enterprise Data			98,938				75,274				194,083				182,982
Automotive			95,171				87,073				304,907				202,638
Industrial			42,141				58,713				139,339				163,116
Communications			46,786				72,296				163,985				187,169
Consumer			62,369				89,182				190,919				266,477
Total		$	474,867			$	495,418			$	1,367,060			$	1,334,136

The following is a summary of revenue by product family (in thousands):

		Three Months Ended September 30,								Nine Months Ended September 30,
Product Family		2023				2022				2023				2022
DC to DC		$	447,394			$	462,982			$	1,290,750			$	1,264,081
Lighting Control			27,473				32,436				76,310				70,055
Total		$	474,867			$	495,418			$	1,367,060			$	1,334,136

“While we expect visibility to remain limited in the short term, which was the same as last quarter, we continue to execute on our long-term strategy,” said Michael Hsing, CEO and founder of MPS.

Business Outlook

The following are MPS’s financial targets for the fourth quarter ending December 31, 2023:

●	Revenue in the range of $442.0 million to $462.0 million.
●	GAAP gross margin between 55.2% and 55.8%. Non-GAAP gross margin (1) between 55.4% and 56.0%, which excludes an estimated impact of stock-based compensation expenses of 0.2%.
●	GAAP operating expenses, between $127.1 million and $131.1 million. Non-GAAP operating expenses (1) between $95.9 million and $97.9 million, which excludes estimated stock-based compensation expenses in the range of $31.2 million to $33.2 million.
●	Total stock-based compensation expenses of $32.2 million to $34.2 million.
●	Interest and other income of $4.1 million to $4.5 million.
●	Fully diluted shares outstanding between 48.7 million and 49.1 million.

(1) Non-GAAP net income, non-GAAP net income per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP other income, net, non-GAAP operating income and non-GAAP income before income taxes differ from net income, net income per share, gross margin, operating expenses, other income (expense), net, operating income and income before income taxes determined in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”). Non-GAAP net income and non-GAAP net income per share exclude the effect of stock-based compensation expense, net deferred compensation plan expense (income), amortization of purchased intangible assets and related tax effects. Non-GAAP gross margin excludes the effect of stock-based compensation expense and deferred compensation plan expense (income). Non-GAAP operating expenses exclude the effect of stock-based compensation expense, amortization of purchased intangible assets and deferred compensation plan income (expense). Non-GAAP other income, net excludes the effect of deferred compensation plan expense (income). Non-GAAP operating income excludes the effect of stock-based compensation expense, amortization of purchased intangible assets and deferred compensation plan expense (income). Non-GAAP income before income taxes excludes the effect of stock-based compensation expense, amortization of purchased intangible assets and net deferred compensation plan expense (income). Projected non-GAAP gross margin excludes the effect of stock-based compensation expense. Projected non-GAAP operating expenses exclude the effect of stock-based compensation expense. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A schedule reconciling non-GAAP financial measures is included at the end of this press release. MPS utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. MPS believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors’ understanding of MPS’s core operating results and trends. Additionally, MPS believes that the inclusion of non-GAAP measures, together with GAAP measures, provides investors with an additional dimension of comparability to similar companies. However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financial measures used by MPS.

Earnings WebinarMPS plans to host a Zoom webinar covering its financial results at 2:00 p.m. PT / 5:00 p.m. ET, October 30, 2023. You can access the webinar at: https://mpsic.zoom.us/j/92277996429. The webinar will be archived and available for replay for one year under the Investor Relations page on the MPS website.

Safe Harbor StatementThis press release contains, and statements that will be made during the accompanying webinar will contain, forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including under the sections “Business Outlook” and the quote from our CEO herein, including, among other things, (i) projected revenue, GAAP and non-GAAP gross margin, GAAP and non-GAAP operating expenses, stock-based compensation expenses, interest and other income, and fully diluted shares outstanding, (ii) our outlook for the fourth quarter of fiscal year 2023 and the near-term, medium-term and long-term prospects of the company, including our performance against our business plan, our ability to grow despite the softening in our business, our industry and the global economic environment, revenue growth in certain of our market segments, potential new business segments, our continued investment into R&D, expected revenue growth, customers' acceptance of our new product offerings, the prospects of our new product development, our expectations regarding market and industry segment trends and prospects, and our projected expansion of capacity and the impact it may have on our business, (iii) our ability to penetrate new markets and expand our market share, (iv) the seasonality of our business, (v) our ability to reduce our expenses, and (vi) statements of the assumptions underlying or relating to any statement described in (i), (ii), (iii), (iv), or (v). These forward-looking statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed by these statements. Readers of this press release and listeners to the accompanying conference call are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ include, but are not limited to, continued downturn in the global economy, including due to the Russia-Ukraine and Israel-Gaza conflicts, inflation, consumer sentiment and other factors; adverse events arising from orders or regulations of governmental entities, including such orders or regulations that impact our customers or suppliers, and adoption of new or amended accounting standards; adverse changes in laws and government regulations such as tariffs on imports of foreign goods, export regulations and export classifications, including in foreign countries where MPS has offices or operations; the effect of export controls, trade and economic sanctions regulations and other regulatory or contractual limitations on our ability to sell or develop our products in certain foreign markets, particularly in China; our ability to obtain governmental licenses and approvals for international trading activities or technology transfers, including export licenses; acceptance of, or demand for, our products, in particular the new products launched recently, being different than expected; our ability to increase market share in our targeted markets; difficulty in predicting or budgeting for future customer demand and channel inventories, expenses and financial contingencies (including as a result of any continuing impact from the Russia-Ukraine and Israel-Gaza conflicts); our ability to efficiently and effectively develop new products and receive a return on our R&D expense investment; our ability to attract new customers and retain existing customers; our ability to meet customer demand for our products due to constraints on our third-party suppliers’ ability to manufacture sufficient quantities of our products or otherwise; our ability to expand manufacturing capacity to support future growth; adverse changes in production and testing efficiency of our products; any political, cultural, regulatory, economic, foreign exchange and operational changes in China, where a significant portion of our manufacturing capacity comes from; any market disruptions or interruptions in our schedule of new product development releases; our ability to manage our inventory levels; adequate supply of our products from our third-party manufacturing partners; adverse changes or developments in the semiconductor industry generally, which is cyclical in nature, and our ability to adjust our operations to address such changes or developments; the ongoing consolidation of companies in the semiconductor industry; competition generally and the increasingly competitive nature of our industry; our ability to realize the anticipated benefits of companies and products that we acquire, and our ability to effectively and efficiently integrate these acquired companies and products into our operations; the risks, uncertainties and costs of litigation in which we are involved; the outcome of any upcoming trials, hearings, motions and appeals; the adverse impact on our financial performance if its tax and litigation provisions are inadequate; our ability to effectively manage our growth and attract and retain qualified personnel; the effect of epidemics and pandemics on the global economy and on our business; the risks associated with the financial market, economy and geopolitical uncertainties, including the recent banking collapse and the Russia-Ukraine and Israel-Gaza conflicts; and other important risk factors identified under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K filed with the SEC on February 24, 2023 and our Quarterly Reports on Form 10-Q filed with the SEC on May 5, 2023 and August 4, 2023. The forward-looking statements in this press release and statements made during the accompanying webinar represent our projections and current expectations, as of the date hereof, not predictions of actual performance, and should not be unduly relied upon. We assume no obligation to update the information in this press release or in the accompanying webinar.

About Monolithic Power SystemsMonolithic Power Systems, Inc. (“MPS”) is a fabless company with a global footprint that provides high-performance, semiconductor-based power electronic solutions. MPS’s mission is to reduce energy and material consumption to improve all aspects of quality of life. Founded in 1997 by our CEO Michael Hsing, MPS has three core strengths: deep system-level knowledge, strong semiconductor expertise, and innovative proprietary technologies in the areas of semiconductor processes, system integration, and packaging. These combined advantages enable MPS to deliver reliable, compact, and monolithic solutions that are highly energy-efficient and cost-effective, while providing a consistent return on investment to our stockholders. MPS can be contacted through its website at www.monolithicpower.com or its support offices around the world.

Monolithic Power Systems, MPS, and the MPS logo are registered trademarks of Monolithic Power Systems, Inc. in the U.S. and trademarked in certain other countries.

Contact:Bernie BlegenChief Financial OfficerMonolithic Power Systems, Inc.408-826-0777investors@monolithicpower.com 

 

Monolithic Power Systems, Inc.Condensed Consolidated Balance Sheets(Unaudited, in thousands, except par value)
		September 30,				December 31,
		2023				2022
ASSETS
Current assets:
Cash and cash equivalents		$	421,178			$	288,607
Short-term investments			621,123				449,266
Accounts receivable, net			185,820				182,714
Inventories			397,288				447,290
Other current assets			109,967				42,742
Total current assets			1,735,376				1,410,619
Property and equipment, net			358,226				357,157
Goodwill			6,571				6,571
Deferred tax assets, net			23,676				35,252
Other long-term assets			204,240				249,286
Total assets		$	2,328,089			$	2,058,885
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	64,707			$	61,461
Accrued compensation and related benefits			64,634				88,260
Other accrued liabilities			120,677				113,679
Total current liabilities			250,018				263,400
Income tax liabilities			55,806				53,509
Other long-term liabilities			77,401				73,374
Total liabilities			383,225				390,283
Commitments and contingencies
Stockholders’ equity:
Common stock and additional paid-in capital: $0.001 par value; shares authorized: 150,000; shares issued and outstanding: 47,911 and 47,107, respectively			1,092,569				975,276
Retained earnings			899,398				716,403
Accumulated other comprehensive loss			(47,103	)			(23,077	)
Total stockholders’ equity			1,944,864				1,668,602
Total liabilities and stockholders’ equity		$	2,328,089			$	2,058,885

Monolithic Power Systems, Inc.Condensed Consolidated Statements of Operations(Unaudited, in thousands, except per share amounts)
		Three Months EndedSeptember 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
Revenue		$	474,867			$	495,418			$	1,367,060			$	1,334,136
Cost of revenue			211,326				204,516				597,064				553,393
Gross profit			263,541				290,902				769,996				780,743
Operating expenses:
Research and development			64,787				67,263				192,184				178,497
Selling, general and administrative			63,188				71,768				205,645				212,353
Total operating expenses			127,975				139,031				397,829				390,850
Operating income			135,566				151,871				372,167				389,893
Other income (expense), net			2,289				5				14,129				(5,720	)
Income before income taxes			137,855				151,876				386,296				384,173
Income tax expense			16,692				27,539				55,827				65,591
Net income		$	121,163			$	124,337			$	330,469			$	318,582
Net income per share:
Basic		$	2.54			$	2.66			$	6.96			$	6.83
Diluted		$	2.48			$	2.57			$	6.78			$	6.60
Weighted-average shares outstanding:
Basic			47,780				46,829				47,501				46,643
Diluted			48,792				48,349				48,734				48,295

SUPPLEMENTAL FINANCIAL INFORMATIONSTOCK-BASED COMPENSATION EXPENSE(Unaudited, in thousands)
		Three Months Ended September 30,								Nine Months EndedSeptember 30,
		2023				2022				2023				2022
Cost of revenue		$	1,020			$	1,186			$	3,317			$	3,691
Research and development			8,480				9,287				26,407				26,875
Selling, general and administrative			24,103				32,524				78,880				95,157
Total stock-based compensation expense		$	33,603			$	42,997			$	108,604			$	125,723

RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME(Unaudited, in thousands, except per share amounts)
		Three Months Ended September 30,								Nine Months EndedSeptember 30,
		2023				2022				2023				2022
Net income		$	121,163			$	124,337			$	330,469			$	318,582
Adjustments to reconcile net income to non-GAAP net income:
Stock-based compensation expense			33,603				42,997				108,604				125,723
Amortization of purchased intangible assets			33				33				99				99
Deferred compensation plan expense (income), net			256				125				767				(350	)
Tax effect			(4,777	)			3,161				(6,144	)			1,885
Non-GAAP net income		$	150,278			$	170,653			$	433,795			$	445,939
Non-GAAP net income per share:
Basic		$	3.15			$	3.64			$	9.13			$	9.56
Diluted		$	3.08			$	3.53			$	8.90			$	9.23
Shares used in the calculation of non-GAAP net income per share:
Basic			47,780				46,829				47,501				46,643
Diluted			48,792				48,349				48,734				48,295

RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN(Unaudited, in thousands)
		Three Months Ended September 30,								Nine Months EndedSeptember 30,
		2023				2022				2023				2022
Gross profit		$	263,541			$	290,902			$	769,996			$	780,743
Gross margin			55.5	%			58.7	%			56.3	%			58.5	%
Adjustments to reconcile gross profit to non-GAAP gross profit:
Stock-based compensation expense			1,020				1,186				3,317				3,691
Deferred compensation plan expense (income)			(75	)			5				385				(46	)
Non-GAAP gross profit		$	264,486			$	292,093			$	773,698			$	784,388
Non-GAAP gross margin			55.7	%			59.0	%			56.6	%			58.8	%

RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES(Unaudited, in thousands)
		Three Months Ended September 30,								Nine Months EndedSeptember 30,
		2023				2022				2023				2022
Total operating expenses		$	127,975			$	139,031			$	397,829			$	390,850
Adjustments to reconcile total operating expenses to non-GAAP total operating expenses:
Stock-based compensation expense			(32,583	)			(41,811	)			(105,287	)			(122,032	)
Amortization of purchased intangible assets			(33	)			(33	)			(99	)			(99	)
Deferred compensation plan income (expense)			1,280				1,210				(3,793	)			8,911
Non-GAAP operating expenses		$	96,639			$	98,397			$	288,650			$	277,630

RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME(Unaudited, in thousands)
		Three Months Ended September 30,								Nine Months EndedSeptember 30,
		2023				2022				2023				2022
Total operating income		$	135,566			$	151,871			$	372,167			$	389,893
Adjustments to reconcile total operating income to non-GAAP total operating income:
Stock-based compensation expense			33,603				42,997				108,604				125,723
Amortization of purchased intangible assets			33				33				99				99
Deferred compensation plan expense (income)			(1,355	)			(1,205	)			4,178				(8,957	)
Non-GAAP operating income		$	167,847			$	193,696			$	485,048			$	506,758

RECONCILIATION OF OTHER INCOME (EXPENSE), NET, TO NON-GAAP OTHER INCOME, NET(Unaudited, in thousands)
		Three Months EndedSeptember 30,								Nine Months EndedSeptember 30,
		2023				2022				2023				2022
Total other income (expense), net		$	2,289			$	5			$	14,129			$	(5,720	)
Adjustments to reconcile other income (expense), net to non-GAAP other income, net:
Deferred compensation plan expense (income)			1,611				1,330				(3,411	)			8,607
Non-GAAP other income, net		$	3,900			$	1,335			$	10,718			$	2,887

RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES(Unaudited, in thousands)
		Three Months EndedSeptember 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
Total income before income taxes		$	137,855			$	151,876			$	386,296			$	384,173
Adjustments to reconcile income before income taxes to non-GAAP income before income taxes:
Stock-based compensation expense			33,603				42,997				108,604				125,723
Amortization of purchased intangible assets			33				33				99				99
Deferred compensation plan expense (income), net			256				125				767				(350	)
Non-GAAP income before income taxes		$	171,747			$	195,031			$	495,766			$	509,645

2023 FOURTH QUARTER OUTLOOKRECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN(Unaudited)
		Three Months Ending December 31, 2023
		Low				High
Gross margin			55.2	%			55.8	%
Adjustment to reconcile gross margin to non-GAAP gross margin:
Stock-based compensation expense			0.2	%			0.2	%
Non-GAAP gross margin			55.4	%			56.0	%

RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES(Unaudited, in thousands)
		Three Months EndingDecember 31, 2023
		Low				High
Operating expenses		$	127,100			$	131,100
Adjustments to reconcile operating expenses to non-GAAP operating expenses:
Stock-based compensation expense			(31,200	)			(33,200	)
Non-GAAP operating expenses		$	95,900			$	97,900